Understanding payment plans and bank loans for real estate investors in Mauritius

Investing in property is a significant decision. In Mauritius, a stable economy, investor-friendly policies, and a range of quality developments stimulate interest among local and international buyers. The recent 2025/2026 Budget introduced new incentives that make the path to homeownership easier, particularly for those considering long-term investment. Whether you’re purchasing your first island home or adding to a portfolio, understanding how financing works is key.

Financing your property

Overview of real estate financing in Mauritius

Mauritius has developed an ecosystem to support real estate transactions, with a legal framework that accommodates residents and non-residents. Buyers can access loans through local banks. Also, various property schemes offer structured payment plans.
Key considerations for foreign and local investors
The 2025/2026 Budget has introduced measures that simplify processes for foreign buyers, including faster permit approvals via the Economic Development Board (EDB). Still, requirements differ depending on whether the buyer is a resident or not, and the type of property involved.

Payment plans for off-plan and completed properties

Flexible instalment plans for off-plan purchases
Off-plan properties are popular because of their competitive pricing and payment flexibility. Developers typically link payment plans to the progress of construction.

Payment milestones: reservation, construction, and handover
• Reservation deposit following Contract of Preliminary Reservation (CRP) signatures: typically 25%
• Construction-linked instalments: usually spread over four to six stages
• Final balance: due at handover
This structure ensures transparency and facilitates cash flow management.

Understanding down payments and escrow accounts
To protect buyer funds, developers must use escrow accounts managed by licensed notaries or banks. You can reserve your property with a down payment, which generally falls between 20% and 30%, depending on the development.

Bank loans for real estate investment in Mauritius

Eligibility criteria for residents and non-residents
Local residents typically access home loans relatively easily, assuming they meet basic lending criteria. For international buyers, eligibility is assessed based on residency status, income source, and whether the property is registered under a government-approved scheme.

Interest rates and loan-to-value (LTV) ratios
Banks usually lend up to 70% of the property value to local buyers, and up to 60% for non-residents. As of mid-2025, interest rates are averaging between 5.75% and 7.25%, depending on the loan structure and borrower profile.

Popular banks offering real estate loans
The best bank in Mauritius for property financing depends on your needs. Leading institutions like MCB, SBM, Absa, and Bank One offer mortgage products that suit different profiles, currencies (MUR, EUR, USD), and repayment terms. It’s worth comparing offers.

Step-by-step guide to securing a property loan

Preparing the necessary documentation
• Identity document or passport
• Proof of income/employment
• Recent bank statements
• Property sale agreement
• Residency or permit documents (for foreigners)

Navigating the application process
After your application is submitted, the bank reviews your financial profile. For foreign applicants, clearance from the Bank of Mauritius and the EDB might be necessary, depending on the property type.

Approval timelines and disbursement stages
Expect approval within two to four weeks. Upon receiving a sanction letter, the loan is released in stages – either in line with construction progress or, for completed homes, once final registration is done through a notary.

Understanding interest rates and mortgage options

Fixed vs variable interest rates
Banks in Mauritius offer both. While fixed rates provide stability, variable rates linked to the key repo rate enable borrowers to potentially benefit from market shifts. In a period of inflation control, many investors are leaning towards fixed-rate options.

How interest rates impact your investment
Small changes in interest rates can affect your long-term returns. When calculating affordability, include the full cost of financing – not just monthly repayments.

Comparing mortgage terms from different banks
• Interest type (fixed or floating)
• Loan duration (typically up to 25 years)
• Early settlement penalties
• Currency flexibility (especially for expats or non-resident investors)

Legal considerations and due diligence

Securing property title and ownership rights
Always confirm that the property’s title is clear and correctly registered. A licensed notary will handle these and manage the legal transaction if you decide to go ahead.

Verifying the developer’s credibility for off-plan projects
If you’re buying into a development, confirm that it’s approved by the EDB. Ask about the developer’s track record, request guarantees where applicable, and review all contracts carefully – especially if you’re buying a property in Mauritius as a foreigner.

Working with a notary for secure transactions
A notary is central to any property transaction in Mauritius. They prepare the deed of sale, coordinate payments, and handle registration. This ensures transparency and legal protection for all parties involved.

Tips for successful financial planning

Calculating ROI and rental yield
Beyond lifestyle perks, property investment in Mauritius can deliver strong rental yields – especially in areas like Grand Baie, Tamarin, and Pereybere. Make sure you’ve done the maths on potential returns, costs, and resale value.

Minimising financial risks with proper budgeting
Allow for registration fees, notary costs (around 1.15%), and other bank-related charges. If you’re buying off-plan, furniture and VAT may also need to be factored in.

Seeking advice from real estate financial experts
Working with professionals – from developers to legal and financial advisors – can make all the difference. A good team will help you navigate the process efficiently and avoid costly mistakes.

Navigating financing for real estate in Mauritius doesn’t have to be overwhelming. Make sure you have the right team to guide you, and explain how payment plans and bank loans work, so that you can approach your purchase with confidence. Whether you’re a resident or exploring property investment in Mauritius from abroad, the current environment presents a real opportunity.

If you’re serious about buying a property in Mauritius as a foreigner, this may be the most favourable time in years to take that step.

The island is waiting for you!